Petrobras takes step toward Amazon oil exploration license with key test go-ahead

[Bolsonaro Considers Privatization of Oil State Company Petrobras]
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Petrobras (NYSE:PBR [https://seekingalpha.com/symbol/PBR]) moves closer to obtaining an exploration permit to drill in an environmentally sensitive offshore region in northern Brazil after receiving authorization [https://oilprice.com/Latest-Energy-News/World-News/Petrobras-Inches-Closer-to-Amazon-Oil-Exploration-License.html] for a pre-operational assessment in the area, OilPrice.com reported Wednesday.

Petrobras (NYSE:PBR [https://seekingalpha.com/symbol/PBR]) has been trying for years to obtain a license to drill in the Foz do Amazonas basin and the wider region known as the Equatorial Margin, and the pre-operational assessment is typically the last step before the issuance of an exploration license.

The company will carry out the test 170 km off the coast, according to Senator Randolfe Rodrigues, the Brazilian government leader in Congress and elected from Amapa state, which would be highly affected by the exploration.

Petrobras (PBR [https://seekingalpha.com/symbol/PBR]) and Brazil's Ibama environmental agency have set the date for the pre-assessment, which is expected to begin in late August and last up to four days.

Petrobras (PBR [https://seekingalpha.com/symbol/PBR]), which plans to spend $3B and drill 15 wells in the Equatorial Margin over the next five years, believes the area has significant oil resource potential, especially in light of recent huge discoveries in nearby regions such as Guyana, French Guiana, and Suriname.

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